Animal Spirits Podcast Redefining a Recession (EP.267)
Jul 27, 2022
The discussion dives into the financial struggles of the middle class and the complexities of defining a recession. Boring stocks are surprisingly outperforming, while the housing market faces intriguing dynamics. There's talk about the resurgence of negotiation skills and how inflation is reshaping consumer priorities. Additionally, the changing behaviors in fintech and delivery services reveal impacts from economic challenges. The hosts also reflect on family dynamics and the emotional weight of solitude, pairing personal stories with industry insights.
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Inflation's Impact
- One individual bought multiple properties during the pandemic but now blames inflation for credit card debt.
- Another retiree returned to work part-time to avoid drawing down retirement savings, citing inflation.
Squeezed Middle Class
- The upper middle class, earning between $75,000 and $127,000, felt the squeeze of inflation.
- They didn't receive substantial government aid and lacked sufficient financial assets to offset rising costs.
Recession Debate
- The White House is arguing that despite potential negative GDP growth, current economic indicators like low unemployment don't signal a recession.
- This contrasts with historical trends where recessions correlate with rising unemployment.
